IMF approves US$155m disbursement for Madagascar

The International Monetary Fund (IMF) has approved an immediate US$155 million disbursement to Madagascar. This funding follows the completion of the combined third and fourth reviews of the country’s programs under the Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF).

The disbursement consists of approximately US$100 million under the ECF and US$55 million under the climate-focused RSF. This financial support arrives as Madagascar faces several economic and social challenges, including a widening external deficit, political transitions, electricity and water shortages, and infrastructure damage caused by tropical cyclones. Additionally, rising global oil prices and the spillover effects of conflict in the Middle East have pressured the import-dependent economy.

While Madagascar’s GDP grew by an estimated 3.1% in 2025, growth is projected to reach 3.8% in 2026 and 4.5% in 2027, supported by reconstruction efforts. However, the current account deficit is expected to widen from 6% of GDP in 2025 to 8.3% in 2026 due to higher petroleum costs and mining sector disruptions. Inflation is also projected to rise to 9.3% in 2026 before declining.